So who’s responsible for this year’s .75-mill real estate tax hike in Bethlehem?

Apparently not three of the city officials who spent 2 1/2 minutes debating it at a budget hearing Monday night.

Mayor John Callahan pointed out that council reduced his $20 million borrowing proposal this year to $16 million and made up part of the difference with the tax increase. (Callahan allowed the budget to become law without his signature).

The money generated from the increase was set aside to pay for capital projects, such as an EMS station and new fire pumper. Those projects were supposed to be paid through a $6 million capital loan, but the administration spent it in 2010 on day-to-day expenses instead.

That increase still left millions of dollars worth of other capital projects without funding.

“I think it was stated when we got information on the five-year capital plan that the administration needs that tax to stay in place 12 and 13 or part of 13,” said Councilman David DiGiacinto, who did not vote for the tax increase.

That’s when the exchange became pointed.

Callahan: “City Council needs that to happen.”

DiGiacinto: “Yeah, so –“

Callahan: “City Council needs that to happen based on the plan that was approved last year.”

DiGiacinto: “Yeah, but you need it for the Cap X, right?”

Callahan: “Based on the plan that council approved. Yes.”

DiGiacinto: “Which plan was that? We approved a one-year budget.”

Callahan: If you look at…I think everyone did it with the understanding that that was going to have to be in place for the future to replenish the NUC" [Non-utility capital borrowing].

That’s when Council’s Finance Chairman J. William Reynolds cut in, pointing out neither he nor DiGiacinto voted for the tax increase. He acknowledged that council can only pass budgets on a year-to year basis, but Reynolds said he thought it “accurate to say that it was part of a three-year plan” when Councilman Eric Evans proposed it last year. Evans was not in the room at the time of the discussion.

A moment later, Council President Robert Donchez – who voted for the increase along with council members Evans, Gordon Mowrer, Karen Dolan and Jean Belinski – spoke.

“Just for the record, [the city clerk] said she thinks the record indicates that it was a two-year plan at this time last year,” Donchez said. “We’ll check the record.”

So, what's the bottom line for taxpayers?

Callahan is proposing a $64.7 million budget for next year that calls for the tax rate to remain steady at 14.85 mills. That equals $742.50 for every $50,000 of assessed property value -- the same as this year. No one has proposed the tax rate be changed yet. Council will meet three more times before it's scheduled adopt a budget Dec. 21.